Tuesday, July 5, 2011

Monument Capital: Carlyle Group's Homeland Security Franchise


Monument Capital's team has James A. Baker, III, Frank Carlucci, Thomas F. "Mac" McLarty and Robert Dunn, all of Carlyle Group fame.  Monument's Senior Advisor is Frances Fragos Townsend, Carlyle risk manager while serving in the Bush White House.  Advisory Board member Mustafa Koc is a partner with Carlyle in Turkish deals.

Monument specializes in homeland security companies, according to promotional materials.

Monument is a pioneer in an emerging investment sector: security-related technology and services.  With an unrivalled investment team, and vastly experienced advisory board including former Secretary of State James Baker, our investment thesis is both expert and unique, but our individuality belies the vastness of the opportunity, and the diversity of this underexploited space.

Estimated at hundreds of billions of dollars per year globally and increasing to more than $280 Billion in 2014, security spending worldwide encompasses an unprecedented variety of applications and markets: from aviation to biometrics to border security, cyber security, critical infrastructure protection, and maritime security to name a few.

Apparently Monument has its eye on Saudi Arabia and the Middle East:

As the security environment around the Middle East region gets increasingly fraught, authorities are sourcing the latest in countermeasures and security systems to suit their increased threat perceptions.

Security fences, thermal scanners, monitoring and surveillance systems, biometric readers and specialised arms and hazard control equipment are high on the agenda as they step up measures to protect pipelines, oil and industrial installations and air and sea ports.
Monument affiliate Persistent Sentinel offers HiRSA, high resolution situational awareness.  Their website has this to say about HiRSA:

HiRSA’s intelligent agents monitor sensors, detect anomalies, provide alerts, offer recommended courses of action and supply other reports. Originally developed for the US military, HiRSA is deployed and proven in the world’s most difficult conditions.

HiRSA allows the operator to control camera, sensors, effectors and other subsystems. The operator can also issue directives to properly equipped sentries.
Summary execution could occur from more than military drones.  Properly equipped effectors and sentries could deliver lethal and sub-lethal force.  Monument's Vortex Systems could provide sensory gear, while Promena could help firms purchase the latest in homeland security technology.

Monument Capital has a new Managing Director, one with a government technology and private equity underwriter (PEU) background.  Jason Rigoli delivered high returns to White Oak Group clients:

Transactions generated by Mr. Rigoli have resulted in an internal rate of return (IRR) of greater than 50%.       

Private equity is expected to play a larger role in the Defense and Security space.  PEU's expect grand returns on Uncle Sam's security business.  Aren't they supposed to watching, not fleecing the federal wallet?